Samantha specialises in personal taxation and trusts. She enjoys being able to demystify these complex areas.
I’m considering investing money into a venture capital trust (VCT).
I’m aware that I can then claim the 30% income tax rebate.
But if I die within five years and my wife inherits the VCT, would my estate be liable to repay the income tax rebate and would my wife have the shares passed to her intact?
A Which? Money member
Samm Galloway, Which? money expert, says…
Good news: the income tax relief wouldn’t be repayable in this scenario.
Any deferred capital gains will also be extinguished, so your wife would inherit the venture capital trust at the value on the date of death.
VCTs are exempt from capital gains tax on disposals during lifetime or on death.
VCTs are typically very high-risk investments, where losses could eclipse tax savings
And as it would be your wife inheriting, this would be an exempt transfer for inheritance tax too.
Other readers should be aware that VCTs are typically very high-risk investments, where losses could eclipse tax savings.
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